Chatterjee misses the bus for Basell acquisition

08-Jul-05

Purnendu Chatterjee seems to have missed the bus for the US$5.6 billion acquisition of the Dutch company Basell Polyolefins. TCG has been trying to leverage HPL to raise funds in India and overseas. However, with the West Bengal government against this move, Chatterjee has gone back to New York a disappointed man, despite several rounds of talks with prospective creditors. The immediate acquisition of the Government's share in HPL as a pre requisite to HPL involvement in Basell- has tossed out Chatterjee's plans to seek a role in the Basell acquisition. Just out of the corporate debt restructuring (CDR) package that helped HPL emerge out of the red, the West Bengal government is unwilling to take the risk of exposing the company to another round of debt. The government estimated that the Basell deal would expose HPL to debt to the tune of Rs 2,500 crore. But will he give up his ambitious plans of being a global player so easily? Chatterjee may seek entry at a later stage, hoping to pick up a stake in Basell from Russian oil-magnate Leonard Blavatnik's Access Industries, which is investing the Dutch company through its subsidiary Nell Acquisition Sarl.